KUALA LUMPUR, Aug 2 — Many people think the revamped Malaysia My Second Home (MM2H) programme only aims to attract more affluent foreigners to South-east Asia’s third largest economy to boost its high-end property segment.

Contrary to popular opinion, the new four-tier programme isn’t solely for the ultra-rich.

Malaysia’s Tourism, Arts and Culture Ministry (Motac) has also put together a package to cater to those wanting a more affordable option; the Special Economic/Financial Zone category comes with the lowest price tag in the revised package.

Here’s the route to the cheapest MM2H package for foreigners above 50 years old keen to reside in Malaysia long-term and don't want to break the bank for it.

Getting started

First, you need to find a licensed MM2H agency to gather, assess and submit your documents as per Motac’s guidelines.

According to some MM2H consultants, the application takes three to four months for the relevant authorities to approve.

Approved, now what?

The applicant must come to Malaysia and open a bank account with a fixed deposit amounting to US$32,000 (RM151,000) within the given time.

The applicant must then buy property in the special economic/financial zone within a year from the approval date while staying in Malaysia.

One of the cheapest property options available in the country right now is in the Forest City enclave in Johor Baru, next door to Singapore.

Malay Mail’s check of property listing websites shows a home there can be bought for RM320,000.

Other payments to be aware of

As an applicant, you’ll need to pay a RM1,000 participation fee, a security bond of between RM200 and RM2,000 based on your nationality, as well as the cost of a mandatory medical examination.

There is also a RM40,000 consultation fee charged by the licensed MM2H agency handling the applicant.

To avoid scammers, you should know that the Malaysian government has fixed the consultation fee to ensure all licensed agents charge a standard rate.

Bought the property, next

Following the property purchase, the applicant is allowed to withdraw 50 per cent of the fixed deposit amount.

The remaining 50 per cent would have to remain in the bank account until the visa termination.

But the applicant is entitled to earn an income from the interest on the fixed deposit, which depending on the bank, is usually between 3.5 and 3.8 per cent a year.

How much can you get in return from your initial investment?

Based on just the fixed deposit alone, the maximum withdrawal is RM75,500.

The income from the annual interest on the fixed deposit is RM2,642 minimum.

And with your property purchase, the potential real estate appreciation after real property gains tax deduction.

The MM2H programme was introduced in 2002, allowing foreigners to buy property and live in Malaysia for an extended period.

It was then temporarily frozen in August 2020 to allow the Home Ministry and Motac to review and update the programme with new terms and conditions.

The programme then made a comeback in October 2021, but had a short and slow run of under two years before Motac decided to give it a fresh look again.

https://www.malaymail.com/news/malaysia/2024/08/02/looking-to-retire-in-malaysia-but-not-that-rich-heres-the-cheapest-route-to-your-mm2h-visa-package/143197